Research On The Price Regulation Reform Of Chinese Public Utilities

China is currently in the process of transition from a planned economy system to a market economic system. Western theories on the Public Utilities price theory has the unique background of developed market economies that lacking the theoretical system of transition from planned economic system to market economic system. This paper studies the problems in the period of economic transformation of Chinese Public Utilities'price reform .It is certainly theoretically significant for the transition countries to explore the theory of Public Utilities prices.The pricing of Chinese Public Utilities continues the government pricing model which built in the conditions of planned economy. Affected by the pricing of private goods which formed by the market in the same time, some market ingredients were mixed into the price formation mechanism of Chinese Public Utilities, but there are some problems in price function of Chinese utilities good. Firstly, the pricing formation model is national pricing in the price regulation model. The country manages highly and monopolistically. Public Utilities sector is the important basic industries and utilities in the national economy, the price of these Public Utilities are determined by state in generally. As a result of these products involves the basic needs of life for the people, the consuming of these Public Utilities is welfare, so the prices is low in general which reduced by the people's live care by state. The expenses of some public goods such as groundwater, water supply, urban public transport, and civilian gas, treatment of garbage and pollution couldn't compensated by the income. On the one hand, the lower price of these Public Utilities impact on the development of these industries. On the other hand, lower price impact consumption and serious waste of resources. The bad outcome such as environmental degradation and overcrowded of urban transport will appear.Secondly, the pricing way formulation of Public Utilities lacks scientific methods. The Public Utilities princing way should base on the social average cast in principle. But it's based on some single corporations in face. The pricing foundation lacks scientific method. It did not fit the pricing theory. The cast of public utilities is submitted by the corporations, and government audits, constitutes or agrees of the price of public utilities Thirdly, the price structure of public utilities is unreasonable. Single pricing way make the pricing way lacking flexible. Or the differential pricing is unfared.In the last, the laws and supervise frameworks on the pricing are incomplete. So it is pointed out that the ideal model of public utilities pricing regulation in the market economy is not found. And the research in this paper is significative.The research way of this paper is based ong the characteristic analysis of public utilities. Then the actuality and ill sticking point of price regulation of public utilities will be analyzed. The way will be found to reform the shortage of pricing rule, adjust the price level, improve the price configuration.The incentive regulation will import to the price control of government. It is advised that the competition mechanism will be imported to the industries or areas of unnatural monopoly, and reinforcing the price supervise and legislation.The origin of paper, the meaning of the paper, the study ways, the basic framework and main contents of the paper are introduced firstly.Text of the paper chapters divided into seven chapters.The theoretical basis of the Public Utilities price is introduced in the first chapter. In this chapter, the definitions of public utilities, products of public utilities, price regulation are introduced. The evolvement, development and actuality of national and abroad publice utilities price are studied.The characteristic and pricing ways of public utilities are introduced in Chapter II. That are speciality of public utilities, the three pricing model public utilities: government directly price regulation, government indirectly price regulation, government without price regulation, and the advantages and disadvantages of all price ways.The price formation mechanism of public utilities is introduced in Chapter III. The necessary of government price regulation and government failure are studied in theory. The variables of price formation general model are changed. A model is used to analyze how achieve the maximization of social welfare and the optimal allocation of resources by prices determining in the background of with government regulation. The gambling between government, corporations and consumers is studied. So the pricing mechanisms of price formation process of public utilities are described. The actuality and existent problems of price regulation of Chinese public utilities are introduced in Chapter IV. The actuality of price regulation are studied from the aspects of price formation way, price means, price level, price structure, price supervise mechanism and laws. It is pointed out that the existent problems of price regulation include low level efficiency of the production and management of public utilities, unreasonable price level, single price structure or unreasonable differential pricing, unscientific of pricing way, faulty price law and supervise mechanism, etc.In ChapterV, The causations of Chinese price regulation of public utilities are analyzed from the aspects of finity of government price regulation, puzzledom of price way selecting and specialness of public utilities price, etc.The abroad successful experience of public goods is introduced in Chapter VI. The abroad countries include United States, Britain, France, Japan and other. The public utilities include water supply, electric power, telecom, etc. Analyzing and studying the pricing object, the pricing principle, the pricing way.Then goal, principle and means of Chinese public utilities price regulation will be making in chapter VII. The price regulation targets are boosting reasonable deployment, improving corporation efficiency, ensuring corporation normal management, deploying resource reasonably, maximizing social welfare, saving energy sources and developing continual. Some rules such as benefiting, unifying of efficiency and fare, compensating cost, benefiting reasonably, the cost demand of consumer and paying voluntarily will take into account. Then the reasonable regulation system and reform price way will be designed. The incentive regulation should be extended. Some regulation should be released. The competition mechanism should be imported. The pricing way of utilities products should be differential pricing. Reinforce the price supervisee and legislation.The innovations in the paper include:1. In the theoretical analyse of public utilities price mechanism, thr dynamic gambling model between governments, corporations and consumes is building by using the model is based on the target function of government persuing the maximal social welfare, corporation persuing the maximal profit and consumes persuing the maximal avail. The necessary and price formation mechanism of public utilities price regulation are analyzed. It is useful for follow practice analyse. 2. In the caused analyzed of the exist problems of Chinese public utilities price regulation, it's based on the finity of government price regulation, the puzzledom of price way selection and the special of public utilities price. The deep level causes of system design are searched and great deals of data are used.3. In the means of public utlity price regulation, The reform advices and concrete exercisable means of Chinese public utilities price regulation reform are pointed out. Such as in the natural monololization operation, it is pointed out that the district competition is the primary way and colligation incentive price regulation is assistant way. The differential standard is pointed out in the price structure.The shortage in the paper is:There are mang baffle in Chinese public utilities price reform, the correlative problems are complex, the auther's theory level is limited, so it is not very deeply in the fundamental causation analyzing of public utilithy price formation. It need the deeply research in future.